I've got a manufacturing client in Colorado where I found Xcel Energy has been incorrectly applying demand charges under Schedule SGS for the past 4 years - they should have been on Schedule SG. The overcharge is about $3,200/month, so we're talking $150K+ in recovery. Xcel is claiming they'll only go back 2 years despite Colorado's 6-year statute. Has anyone dealt with Xcel pushback on retroactive billing corrections? I have all the documentation but they're stonewalling at the supervisor level.
Xcel Energy refusing to honor 6-year statute on demand charge error
Omar, I've had similar issues with Xcel in Minnesota on rate classification errors. They always try the 2-year limit first - it's their standard response. You need to reference PUC Rule 4 CCR 723-3-3355 which specifically allows retroactive billing corrections for utility errors. File a formal complaint with the Colorado PUC if they don't budge after you cite the regulation. I recovered 5 years once this way.
Mike's right about the PUC route. Xcel Energy actually settles most retroactive claims once you file formally - they just count on customers not knowing the process. Document everything: the original LOA, all communications, tariff pages showing the correct rate classification. The key is proving it was their error, not a customer-requested rate change. Keep your client informed that PUC complaints typically take 3-6 months but the recovery is worth it.
Just went through this exact scenario with Xcel in Colorado last year on a hospital account. They eventually paid back 4.5 years once I escalated to their regulatory affairs department. The trick is getting past the customer service reps who don't understand billing correction vs rate change. Ask specifically for regulatory billing review - different department, they actually know the rules.
Thanks everyone! Eugene, did you have to file with the PUC or did regulatory affairs handle it directly? I'm trying to avoid the formal complaint process if possible since the client is getting impatient. Going to try the regulatory billing review route first.
They handled it directly once I got to the right department. Took about 6 weeks for the review and another month for the refund check. The refund was around $87K so definitely worth the patience. Just make sure you have the original service application showing they classified the rate - that was the smoking gun in my case.